Swiss fuel prices fall as oil drops amid hopes for Iran peace, Digi Mart USA News (Switzerland): After several months of rising costs, fuel prices in Switzerland are falling, bringing welcome relief to drivers. Gasoline and diesel had climbed sharply, driven in part by the war in Iran and transport difficulties on the Rhine River.
A reader of 20 Minutes said he was surprised on Friday morning to see unleaded 95 priced at 1.99 francs, noting that it had cost noticeably more only a few days earlier. He said he saw the same price at two other service stations.
Erich Schwizer, an expert at the TCS, confirmed the decrease. Starting Thursday evening, many stations reduced prices by about 12 centimes per liter for gasoline and six centimes for diesel, and most others followed on Friday.
Smaller reductions had already been observed the previous weekend, but this one is much more pronounced.
According to the figures released, average prices now stand at 1.99 francs for unleaded 95, 2.10 francs for unleaded 98 and 2.34 francs for diesel. Unleaded 95 has dropped back below the two-franc mark for the first time since August.
The easing is largely explained by lower oil prices. The Brent crude benchmark, a reference in Europe, fell from 116 dollars at the end of last week to 94 dollars on Wednesday.
The decline came after the U.S. midterm elections, in which Donald Trump’s Republicans lost their majority in the Senate and the House of Representatives.
Several analysts interviewed by CNBC said these results could change U.S. policy toward Iran.
Markets appear to be anticipating a possible de-escalation of the conflict. “Elections lead the market to think that Trump could now be ready to conclude a deal,” said Andy Lipow, president of Lipow Oil Associates.
The new Democratic majority could also seek to limit funding for the war.
Lower oil prices allow service station operators to buy supplies at better prices, Schwizer explained. However, he urged caution.
Transport costs remain high, and geopolitical tensions continue to weigh on the market. “It is difficult to say whether prices will remain low over the long term,” he warned.
